Tongcheng Travel (780) Q2 2025 earnings summary

Executive summary

• Revenue grew 10.0% year-over-year to RMB4,669.4 million in Q2 2025 and 11.5% to RMB9,046.9 million for H1 2025, driven by robust demand, effective user engagement, and expansion in both domestic and international markets.

• Adjusted net profit reached RMB775.1 million for Q2 2025 (up 18.0% YoY) and RMB1,563.3 million for H1 2025 (up 28.6% YoY), with improved adjusted net margins of 16.6% and 17.3%, respectively.

• Adjusted EBITDA rose 29.7% year-over-year to RMB1,185.2 million in Q2 2025, with margin up to 25.4%.

• User metrics showed strong growth: average monthly paying users (MPUs) increased 9.2% YoY to 46.4 million in Q2 2025, and annual paying users (APUs) reached 251.7 million, up 10.2%.

• The company expanded its presence in lower-tier cities and among younger, experience-driven travelers, leveraging the Weixin ecosystem and standalone app for user acquisition.

Financial highlights

• Q2 2025 revenue: RMB4,669.4 million (+10.0% YoY); H1 2025 revenue: RMB9,046.9 million (+11.5% YoY).

• Q2 2025 adjusted EBITDA: RMB1,185.2 million (+29.7% YoY), margin 25.4%; H1 2025 adjusted EBITDA: RMB2,344.6 million (+35.2% YoY), margin 25.9%.

• Q2 2025 adjusted net profit: RMB775.1 million (+18.0% YoY), margin 16.6%; H1 2025 adjusted net profit: RMB1,563.3 million (+28.6% YoY), margin 17.3%.

• Q2 2025 profit for the period: RMB642.1 million (+49.6% YoY); H1 2025 profit: RMB1,320.6 million (+59.2% YoY).

• Basic EPS for Q2 2025: RMB0.28 (vs. RMB0.19 in Q2 2024); H1 2025: RMB0.58 (vs. RMB0.37 in H1 2024).

Outlook and guidance

• Management remains optimistic about China's travel industry, citing strong consumer demand, government support, and digitalization trends.

• Plans to expand core OTA business, strengthen outbound travel, and grow hotel management operations to enhance long-term competitiveness.

• Focus on leveraging technology, including AI-powered tools, to improve operational efficiency and user experience.

• Expects outbound business to break even and turn profitable within the year, with long-term higher margins than domestic business.

• Continued commitment to corporate governance, environmental protection, and social responsibility.